End of betting: 'Clubs can't get rid of the costs overnight,' says expert.

Brazilian football is facing a week of structural changes with a direct impact on club finances. The ban on sports betting companies as sponsors and the progressive limitation of foreign players in squads are placing the sector before a scenario of unprecedented revenue reconfiguration.

According to an analysis by Moisés Assayag, managing partner of Channel Associados and specialist in sports finance, published in Marcel Rizzo's column in Estadão , the effects of the departure of betting companies go far beyond direct contracts between clubs and betting houses. Rights holders, prize money, and new sponsorships should also be affected, in a movement that tends to put pressure on market prices.

One of the critical points raised by Assayag is the mismatch between the clubs' revenues and operating costs. Betting companies are currently the main financiers of football in the country, and their departure doesn't allow for immediate squad adjustments. "And what about the clubs' costs? They can't get rid of that squad overnight. They have commitments made here with an expectation of revenue. Overnight they no longer have the revenue, but they're stuck with the costs," the expert stated.

Restriction on foreigners

The limitation on foreign players, whose presence in squads should drop from the nine currently allowed to a maximum of five in 2030, was viewed favorably by Assayag. In his assessment, the measure could encourage clubs to invest more in youth academies, a stated objective of the Brazilian Football Confederation (CBF) when defining the rule. He stated, however, that complementary measures are necessary for the change to produce the expected results.

"First of all, we need to reactivate and strongly encourage the under-23 championship, to bring back that reserve team championship that we used to have. And I think the measures have to be aimed at providing incentives to use these youth players. Even financial incentives to some extent," Assayag stated.

Another expected side effect of the betting ban is pressure on sponsorship values. With several clubs simultaneously seeking new commercial partners to fill the space left by betting companies, the trend, according to experts, is a reduction in the values ​​practiced in new agreements.